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1 month ago
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Government departments owe the Msunduzi Municipality in KwaZulu-Natal about R300 million.
- Government departments owe the Msunduzi Municipality about R300 million.
- Most debt relates to property rates, water, and electricity.
- Payment plans are being negotiated, but some services have been suspended.
Msunduzi Local Municipality in KwaZulu-Natal is drowning in debt, and government departments are among the biggest culprits, owing the cash-strapped city almost R300 million in unpaid bills.
The Pietermaritzburg-based municipality has been embarking on numerous operations efforts to recoup some money from the departments.
According to the city, the total outstanding debt owed by government departments stands at approximately R297 million, with most of the balances dating back more than a year.
The city confirmed to News24 that the largest contributors to the debt are the provincial public works and education departments, as well as the national public works department.
Municipality spokesperson, Ntobeko Mkhize, said the bulk of the outstanding amounts relate to property rates, which remain the largest category of debt, followed by water and electricity services.
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Mkhize said it had, over an extended period, engaged the affected departments through formal and intergovernmental platforms in an effort to recover the outstanding funds.
She said, most recently, a meeting was held with the provincial education department on Monday to address its arrears accounts.
“These engagements form part of an ongoing process to secure commitments and reach sustainable payment arrangements,” said Mkhize.
Mkhize said a payment plan was currently in place with the provincial public works department for current-year rates.
However, historical debt remains a major challenge and discussions to resolve these older balances are continuing, said Mkhize.
Mkhize told News24 that its recent engagement with the Department of Education was aimed at finalising a payment agreement.
She said:
The talks were described as constructive, with the department making commitments towards settling its outstanding obligations.
Mkhize stressed that unpaid accounts, whether from government departments, businesses or residents, directly affect its cash flow and ability to deliver basic services.
“Any arrears debt has a direct impact on the municipality’s capacity to function effectively,” said Mkhize, urging all debtors to come forward and enter into payment arrangements.
Due to prolonged nonpayment, the municipality has also been forced to suspend certain services to some government departments, in accordance with applicable legislation and municipal policies.
At the same time, Mkhize said the municipality continues to use intergovernmental relations platforms to engage defaulting departments, with the aim of reaching sustainable payment plans and ensuring compliance with financial obligations.
Msunduzi Municipality has set a target to significantly reduce government debt by 30 April 2026, although this goal will require strong cooperation and commitment from all affected departments, Mkhize said.
“Council remains committed to working collaboratively to resolve this matter and restore financial stability,” she added.
